How does the law distinguish a rank-and-file employee from a managerial employee for thirteenth-month pay?
The Labor Code distinguishes a managerial employee as one vested with powers to lay down management policies or to hire, transfer, suspend, layoff, or discipline employees. Any employee who does not fall within this specific definition is legally considered a rank-and-file employee. This distinction is critical under Presidential Decree No. 851, as only rank-and-file employees are entitled to the thirteenth-month pay by default. Managerial employees are generally excluded unless granted by company policy. 17-May-26About Nicolas and De Vega Law Offices
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